EX-99.1 2 ex99_1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

Contact:     Fresenius Medical Care AG & Co. KGaA
Oliver Maier   Else-Kröner-Str.1
Phone: + 49 6172 609 2601   61352 Bad Homburg
Fax: + 49 6172 609 2301   Germany
      www.fmc-ag.com
North America:    
Terry L. Morris    
Phone: + 1 800 948 2538    
Fax: + 1 615 345 5605    
       
E-mail: ir@fmc-ag.com   February 21, 2012

 

Investor News

 

Fresenius Medical Care Reports Very Strong Fourth

Quarter and Full Year Results; Another Record Year expected for 2012

 

4th Quarter 2011 Summary:

 

Net revenue   $3,323 million   +5%
Operating income (EBIT)   $587 million   +9%
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA   $310 million   +14%
Earnings per share   $1.02   +14%

 

Full Year 2011 Summary:

 

Net revenue   $12,795 million   +6%
Operating income (EBIT)   $2,075 million   +8%
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA   $1,071 million   +9%
Earnings per share   $3.54   +9%
Dividend Proposal     Ordinary share   €0.69   +6%
Preference share   €0.71   +6%

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 1 of 19
 

 

Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA (the “company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the fourth quarter and full year of 2011.

 

4th Quarter 2011:

 

Revenue

 

Net revenue for the fourth quarter of 2011 increased by 5% to $3,323 million (+6% at constant currency) compared to the fourth quarter of 2010. Organic revenue growth worldwide was 3%. Dialysis services revenue grew by 3% to $2,435 million (+4% at constant currency) and dialysis product revenue increased by 9% to $888 million (+10% at constant currency).

 

North America revenue for the fourth quarter of 2011 increased by 1% to $2,096 million including the impact of the new Medicare end-stage renal disease prospective payment system in the United States. Dialysis services revenue increased by 1% to $1,882 million with a same market growth of 3%. Average revenue per treatment for U.S. clinics decreased to $351 in the fourth quarter of 2011 compared to $355 for the corresponding quarter in 2010 reflecting the implementation of the new prospective payment system. Dialysis product revenue increased by 2% to $214 million, mainly as a result of increased sales of hemodialysis products partially offset by lower pricing of renal pharmaceuticals.

 

International revenue increased by 12% to $1,223 million (+14% at constant currency). Organic revenue growth was 8%. Dialysis services revenue increased by 13% to $553 million (+16% at constant currency). Dialysis product revenue increased by 11% to $669 million and increased by 12% at constant currency, mainly driven by higher sales of peritoneal dialysis products, dialysis machines, dialyzers, products for acute care treatments and renal pharmaceuticals.

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 2 of 19
 

 

Earnings

 

Operating income (EBIT) for the fourth quarter of 2011 increased by 9% to $587 million compared to $539 million in the fourth quarter of 2010. This resulted in an operating margin of 17.7% for the fourth quarter of 2011 compared to 17.0% for the corresponding quarter in 2010.

 

In North America, the operating margin increased from 17.9% in the fourth quarter of 2010 to 19.1% in the fourth quarter of 2011. This increase was favorably influenced by the development of pharmaceutical costs. Average costs per treatment for U.S. clinics decreased to $279 in the fourth quarter of 2011 compared to $287 for the corresponding quarter in 2010.

 

In the International segment, the operating margin increased from 18.0% to 18.7% mainly due to favorable exchange rate effects and business growth in Asia-Pacific.

 

Net interest expense for the fourth quarter of 2011 was $82 million compared to $74 million in the fourth quarter of 2010. This development was mainly attributable to the higher level of financial debt as a result of the issuance of various tranches of senior notes over the course of 2011.

 

Income tax expense was $165 million for the fourth quarter of 2011 compared to $169 million in the fourth quarter of 2010. The effective tax rate decreased to 32.7% from 36.3%.

 

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the fourth quarter of 2011 was $310 million, an increase of 14% compared to the corresponding quarter of 2010.

 

Earnings per share (EPS) for the fourth quarter of 2011 rose by 14% to $1.02 per ordinary share compared to $0.90 for the fourth quarter of 2010. The weighted average number of shares outstanding for the fourth quarter of 2011 was approximately 303.9 million shares compared to 302.1 million shares for the fourth quarter of 2010. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 3 of 19
 

 

Cash flow

 

In the fourth quarter of 2011, the company generated $497 million in cash from operations, an increase of 46% compared to the corresponding figure last year and representing approximately 15% of revenue. The cash flow generation was supported by increased earnings, a favorable development of days sales outstanding (DSO) compared to the fourth quarter of 2010 and lower income tax payments.

 

A total of $191 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $306 million compared to $173 million in the fourth quarter of 2010. A total of $604 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was minus $298 million compared to minus $75 million in the fourth quarter of 2010.

 

Full Year 2011:

 

Revenue and Earnings

 

Net revenue for the full year 2011 increased by 6% to $12,795 million (+5% at constant currency) compared to the full year 2010 and in line with our guidance. Organic revenue growth was 2% in the full year 2011.

 

Operating income (EBIT) for the full year 2011 increased by 8% to $2,075 million compared to $1,924 million in 2010, resulting in an operating margin of 16.2% compared to 16.0% for the full year 2010.

 

Net interest expense for the full year 2011 was $297 million compared to $280 million in the same period of 2010.

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 4 of 19
 

 

Income tax expense for the full year 2011 was $601 million compared to $578 million in the same period in 2010, reflecting effective tax rates of 33.8% and 35.2%, respectively.

 

For the full year 2011, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $1,071 million, up by 9% from the full year 2010 and in line with our guidance.

 

In the full year 2011, earnings per ordinary share rose by 9% to $3.54. The weighted average number of shares outstanding during the full year 2011 was approximately 303.0 million.

 

Cash Flow

 

Cash from operations during 2011 was $1,446 million compared to $1,368 million for the same period in 2010, representing approximately 11% of revenue and above our targeted 10% level.

 

A total of $570 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the full year 2011 was $876 million compared to $861 million in the same period in 2010. A total of $1,775 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was minus $899 million compared to $243 million in the last year.

 

Please refer to the attachments for a complete overview on the fourth quarter and the full year 2011 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 5 of 19
 

 

Patients – Clinics – Treatments

 

As of December 31, 2011, Fresenius Medical Care treated 233,156 patients worldwide, which represents a 9% increase compared to the previous year’s figure. North America provided dialysis treatments for 142,319 patients, an increase of 3%. Including 21 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 143,679. The International segment provided dialysis treatments to 90,837 patients, an increase of 18% over the prior year’s figure.

 

As of December 31, 2011, the company operated a total of 2,898 clinics worldwide, which represents a 6% increase compared to the previous year’s figure. The number of clinics is comprised of 1,838 clinics in North America (1,859 including managed clinics), and 1,060 clinics in the International segment, representing an increase of 2% and 13%, respectively.

 

During the full year 2011, Fresenius Medical Care delivered approximately 34.39 million dialysis treatments worldwide. This represents an increase of 9% compared to last year’s figure. North America accounted for 21.61 million treatments, an increase of 4%. The International segment delivered 12.78 million treatments, an increase of 18%.

 

Employees

 

As of December 31, 2011, Fresenius Medical Care had 79,159 employees (full-time equivalents) worldwide compared to 73,452 employees at the end of 2010. This increase of more than 5,700 employees is due to overall growth in the company’s business and acquisitions.

 

Dividend

 

The company intends to continue its earnings-driven dividend policy. At the Annual General Meeting to be held on May 10, 2012, shareholders will be asked to approve a dividend of €0.69 per ordinary share, an increase of 6% from 2010 (€0.65). For the 15th consecutive year, shareholders can expect to receive an increased annual dividend.

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 6 of 19
 

 

Debt/EBITDA ratio

 

The ratio of debt to Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.38 at the end of 2010 to 2.69 at the end of 2011. The debt/EBITDA ratio at the end of the third quarter 2011 was 2.55.

 

Rating

 

Standard & Poor’s Ratings Services rates the company’s corporate credit as ‘BB’ with a ‘positive’ outlook. Moody's rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch rates the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

 

Vifor Fresenius Medical Care Renal Pharma Ltd. Formation Completed

 

After the recent clearance by the European Union antitrust commissions the formation of Vifor Fresenius Medical Care Renal Pharma Ltd. was completed globally on November 1, 2011.

 

Acquisition of American Access Care Completed

 

The American Accesss Care (AAC) acquisition was closed effective October 1, 2011. AAC operates 28 freestanding out-patient centers primarily dedicated to serving vascular access needs of dialysis patients. The acquired operations will add approximately $175 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 7 of 19

 

 

Acquisition of Liberty Dialysis Holdings, Inc.

 

The acquisition of Liberty Dialysis Holdings, Inc. is on schedule and is still expected to close in the first quarter of 2012.

 

Issuance of senior notes

 

In January 2012, Fresenius Medical Care successfully completed the largest placement of senior notes in the history of the company. Proceeds from the offering of three tranches of U.S. dollar and euro-denominated senior unsecured notes amounting to approximately $1.81 billion are intended to be used for acquisitions, including the acquisition of Liberty Dialysis Holdings, Inc., to refinance indebtedness and for general corporate purposes. The coupon for the dollar-denominated senior notes in the principal amount of $800 million due 2019 is 5.625% and the coupon for the dollar-denominated senior notes in the principal amount of $700 million due 2022 is 5.875%. The coupon for the euro-denominated senior notes in the principal amount of €250 million due 2019 is 5.25%. All tranches were issued at par.

 

Issuance of floating rate senior notes

 

In October 2011, Fresenius Medical Care issued euro-denominated floating rate senior notes in the principal amount of €100 million, due 2016. The coupon is equal to the three-month Euribor rate plus 350 basis points.

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 8 of 19
 

 

Outlook for 2012

 

For the year 2012, the company expects revenue to grow to around $14 billion. This takes into account a change in US-GAAP1) in the presentation of U.S. dialysis service revenue which will be shown net of the provision for bad debt. Based on the comparable revenue for 2011 of $12,571 million the revenue outlook represents an increase of 11% and between 13% and 15% based on constant currencies.

 

Net income is expected to grow to around $1.3 billion and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to around $1.14 billion with operating margins forecast to increase to approximately 16.9%.

 

For 2012, the company expects to spend around $700 million on capital expenditures and around $1.8 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2012.

 

“We are very pleased to have achieved another year of record results in 2011. In the past 15 years, since the foundation of the company, Fresenius Medical Care has been able to quadruple its sales and to increase its earnings tenfold. With our strong performance in 2011 we are proposing to deliver our fifteenth consecutive dividend increase to our shareholders", said Ben Lipps, chief executive officer of Fresenius Medical Care. "We successfully handled the implementation of the new reimbursement system in the U.S. and have made good progress on our growth initiatives. We are confident that we will continue our strong performance targeting another record year in 2012.”

 

1) First time adoption of Accounting Standards Codification 954-605 in 2012 (Patient service revenue less provision for bad debt).

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 9 of 19
 

 

Video Webcast

 

Fresenius Medical Care will hold an analyst meeting at its headquarters in Bad Homburg, Germany to discuss the results of the fourth quarter and full year of 2011 on Tuesday, February 21, 2012, at 3:15 p.m. CET / 9:15 a.m. EDT. The company invites investors to view the live webcast of the meeting at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the meeting.

 

About Fresenius Medical Care

Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.1 million individuals worldwide. Through its network of 2,898 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 233,156 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

 

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 10 of 19
 

 

Fresenius Medical Care
Statement of Earnings		  Three Months Ended December 31,   Twelve Months Ended December 31,
(in US-$ thousands, except share data)  2011   2010   Change   2011   2010   Change 
(audited)                        
                         
Net revenue                              
Dialysis Care   2,435,202    2,354,266    3.4%   9,507,173    9,070,546    4.8%
Dialysis Products   887,327    812,791    9.2%   3,287,887    2,982,944    10.2%
Total net revenue   3,322,529    3,167,057    4.9%   12,795,060    12,053,490    6.2%
                               
Cost of revenue   2,112,693    2,052,714    2.9%   8,274,359    7,908,769    4.6%
Gross profit   1,209,836    1,114,343    8.6%   4,520,701    4,144,721    9.1%
                               
Selling, general and administrative   601,573    549,721    9.4%   2,365,934    2,133,333    10.9%
Research and development   30,290    29,276    3.5%   110,834    96,532    14.8%
Income from equity method investees   (8,557)   (3,465)   147.0%   (30,959)   (8,949)   245.9%
Operating income (EBIT)   586,530    538,811    8.9%   2,074,892    1,923,805    7.9%
                               
Interest income   (16,943)   (6,607)   156.4%   (59,825)   (25,409)   135.4%
Interest expense   99,234    80,655    23.0%   356,358    305,473    16.7%
Interest expense, net   82,291    74,048    11.1%   296,533    280,064    5.9%
Income before taxes   504,239    464,763    8.5%   1,778,359    1,643,741    8.2%
Income tax expense   165,040    168,838    (2.2)%   601,097    578,345    3.9%
Net income   339,199    295,925    14.6%   1,177,262    1,065,396    10.5%
Less: Net income attributable to noncontrolling interest   28,762    24,581    17.0%   106,108    86,879    22.1%
Net income attributable to shareholders of FMC AG & Co. KGaA   310,437    271,344    14.4%   1,071,154    978,517    9.5%
                               
Operating income (EBIT)   586,530    538,811    8.9%   2,074,892    1,923,805    7.9%
Depreciation and amortization   143,588    133,900    7.2%   557,283    503,224    10.7%
EBITDA   730,118    672,711    8.5%   2,632,175    2,427,029    8.5%
                               
Total bad debt expenses   66,484    53,441         241,598    218,478      
                               
Earnings per ordinary share  $1.02   $0.90    13.7%  $3.54   $3.25    8.7%
Earnings per ordinary ADS  $1.02   $0.90    13.7%  $3.54   $3.25    8.7%
                               
Weighted average number of shares                              
Ordinary shares   299,897,235    298,109,602         299,012,744    296,808,978      
Preference shares   3,965,479    3,945,649         3,961,617    3,912,348      
                               
In percent of revenue                              
Cost of revenue   63.6%   64.8%        64.7%   65.6%     
Gross profit   36.4%   35.2%        35.3%   34.4%     
Selling, general and administrative   18.1%   17.4%        18.5%   17.7%     
Research and development   0.9%   0.9%        0.9%   0.8%     
Income from equity method investees   (0.3)%   (0.1)%        (0.2)%   (0.1)%     
Operating income (EBIT)   17.7%   17.0%        16.2%   16.0%     
Interest expense, net   2.5%   2.3%        2.3%   2.3%     
Income before taxes   15.2%   14.7%        13.9%   13.6%     
Income tax expense   5.0%   5.3%        4.7%   4.8%     
Net income attributable to noncontrolling interest   0.9%   0.8%        0.8%   0.7%     
Net income attributable to shareholders of FMC AG & Co. KGaA   9.3%   8.6%        8.4%   8.1%     
                               
EBITDA   22.0%   21.2%        20.6%   20.1%     

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 11 of 19
 

 

Fresenius Medical Care
Segment and Other Information		  Three Months Ended December 31,   Twelve Months Ended December 31, 
(in US-$ million, except employees)   2011    2010    Change    2011    2010    Change 
(audited)                              
                               
Net revenue                              
North America   2,096    2,072    1.1%   8,150    8,130    0.2%
International   1,223    1,095    11.7%   4,628    3,923    18.0%
Corporate   4    —    —    17    —    — 
Total net revenue   3,323    3,167    4.9%   12,795    12,053    6.2%
                               
Operating income (EBIT)                              
North America   400    372    7.7%   1,435    1,386    3.6%
International   228    197    15.7%   807    678    19.2%
Corporate   (41)   (30)   39.4%   (167)   (140)   20.4%
Total operating income (EBIT)   587    539    8.9%   2,075    1,924    7.9%
                               
Operating income in percent of revenue                              
North America   19.1%   17.9%        17.6%   17.0%     
International   18.7%   18.0%        17.4%   17.3%     
Total   17.7%   17.0%        16.2%   16.0%     
                               
Employees                         
Full-time equivalents                  79,159    73,452      

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 12 of 19
 

 

Fresenius Medical Care            
Reconciliation of non US-GAAP      
financial measures to the most directly
comparable US-GAAP financial measures		  Three Months Ended December 31,  Twelve Months Ended December 31,
(in US-$ million)  2011  2010  2011  2010
(audited)            
             
Segment information North America                    
Net revenue   2,096    2,072           
Costs of revenue and research and development   1,328    1,352           
Selling, general and administrative   378    351           
Income from equity method investees   (10)   (3)          
Costs of revenue and operating expenses   1,696    1,700           
Operating income (EBIT)   400    372           
In percent of revenue   19.1%   17.9%          
                     
Dialysis products revenue incl. and excl. internal sales                    
North America                    
Dialysis products revenue incl. internal sales   404    399           
Less internal sales   (190)   (189)          
Dialysis products external sales   214    210           
International                    
Dialysis products revenue incl. internal sales   784    703           
Less internal sales   (115)   (100)          
Dialysis products external sales   669    603           
                     
Reconciliation of cash flow from operating activities to EBITDA 1)                    
Total EBITDA             2,632    2,427 
Interest expense, net             (297)   (280)
Income tax expense             (601)   (578)
Change in working capital and other non-cash items             (288)   (201)
Net cash provided by operating activities             1,446    1,368 
                     
Annualized EBITDA                    
Operating income (EBIT) last twelve months             2,075    1,924 
Depreciation and amortization last twelve months             557    503 
Non-cash charges             54    45 
Annualized EBITDA             2,686    2,472 

 

1) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care’s long-term debt instruments.

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 13 of 19
 

 

Fresenius Medical Care      
Balance Sheet  December 31,   December 31, 
(in US-$ million)
(audited)		   2011    2010 
           
Assets          
Current assets   5,695    5,153 
Intangible assets   9,873    8,833 
Other non-current assets   3,965    3,109 
Total assets   19,533    17,095 
           
Liabilities and equity          
Current liabilities   4,263    3,790 
Long-term liabilities   6,799    5,501 
Noncontrolling  interest subject to put provisions   410    280 
Total equity   8,061    7,524 
Total liabilities and equity   19,533    17,095 
           
Equity/assets ratio:   41%   44%
           
Debt   —      
Short-term borrowings   99    671 
Short-term borrowings from related parties   28    10 
Current portion of long-term debt and capital lease obligations   1,589    264 
Trust preferred securities        625 
Long-term debt and capital lease obligations, less current portion   5,495    4,310 
Total debt   7,211    5,880 

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 14 of 19
 

 

 

Fresenius Medical Care        
Cash Flow Statement        
Twelve Months Ended December 31,   2011    2010 
(in US-$ million)          
(audited)          
           
Operating activities          
Net income   1,177    1,066 
Depreciation / amortization   557    503 
Change in working capital and other non-cash items   (288)   (201)
Cash Flow from operating activities   1,446    1,368 
           
Investing activities          
Purchases of property, plant and equipment   (598)   (523)
Proceeds from sale of property, plant and equipment   28    16 
Capital expenditures, net   (570)   (507)
Free Cash Flow   876    861 
           
Acquisitions, net of cash acquired and net purchases of intangible assets   (1,785)   (764)
Proceeds from divestitures   10    146 
Acquisitions, net of divestitures   (1,775)   (618)
Free Cash Flow after acquisitions, net of divestitures   (899)   243 
           
Financing activities          
Change in accounts receivable securitization program   25    296 
Change in intercompany debt   20    — 
Change in other debt   1,690    (103)
Proceeds from exercise of stock options   95    110 
Redemption of trust preferred securities   (654)   — 
Distributions to noncontrolling interest   (130)   (112)
Contributions from noncontrolling interest   28    26 
Dividends paid   (281)   (232)
Cash Flow from financing activities   793    (15)
           
Effects of exchange rates on cash   40    (6)
Net increase (decrease) in cash   (66)   222 
           
Cash at beginning of period   523    301 
Cash at end of period   457    523 

 

 

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Fresenius Medical Care                    
Quarterly Performance Scorecard - Revenue                    
Three months ended December 31,   2011    cc    2010    cc 
(in US-$ thousands, except per-treatment revenue)                    
(audited)                    
                     
North America                    
Net revenue   2,095,512         2,072,009      
Growth year-over-year   1.1%        3.0%     
                     
Dialysis care   1,881,497         1,862,173      
Growth year-over-year   1.0%        3.5%     
U.S. per treatment   351         355      
Per treatment   343         347      
Sequential growth   1.8%        (1.2)%     
Growth year-over-year   (1.3)%        (0.9)%     
                     
Dialysis products                    
Incl. internal sales   403,925         399,472      
Growth year-over-year   1.1%        4.4%     
External sales   214,015         209,836      
Growth year-over-year   2.0%        (1.3)%     
                     
International                    
Net revenue   1,222,833         1,094,985      
Growth year-over-year   11.7%   13.7%   7.0%   10.1%
                     
Dialysis care   553,705         492,093      
Growth year-over-year   12.5%   16.0%   15.2%   18.3%
Per treatment   161    166    169    173 
Sequential growth   (5.2)%        5.6%     
Growth year-over-year   (4.4)%   (1.4)%   (2.7)%   0.0%
                     
Dialysis products                    
Incl. internal sales   783,569         703,369      
Growth year-over-year   11.4%   12.8%   3.6%   6.9%
External sales   669,129         602,892      
Growth year-over-year   11.0%   11.9%   1.1%   4.2%

cc = at constant currencies 1

1 Constant currency

Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure “at constant exchange rates” in our filings to show changes in our revenue without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, revenues received in local (non-U.S. dollar) currency are translated into U.S. dollars at the average exchange rate for the period presented. When we use the term “constant currency”, it means that we have translated local currency revenues for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenues into U.S. dollars that we used to translate local currency revenues for the comparable reporting period of the prior year. We then calculate the change, as a percentage, of the current period revenues using the prior period exchange rates versus the prior period revenues. This resulting percentage is a non-GAAP measure referring to a change as a percentage “at constant exchange rates”.

We believe that revenue growth is a key indication of how a company is progressing from period to period and that the non-GAAP financial measure constant currency is useful to investors, lenders, and other creditors because such information enables them to gauge the impact of currency fluctuations on its revenue from period to period. However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both constant currency period-over-period changes in non-U.S. GAAP revenue on the one hand and changes in revenue prepared in accordance with U.S. GAAP on the other. We caution the readers of this report to follow a similar approach by considering data on constant currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue prepared in accordance with U.S. GAAP. We present the fluctuation derived from U.S. GAAP revenue next to the fluctuation derived from non-GAAP revenue. Because the reconciliation is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.

 

 

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Fresenius Medical Care          
Quarterly Performance Scorecard - Dialysis Care Volume          
Three months ended December 31,   2011    2010 
(audited)          
           
North America          
Number of treatments   5,498,236    5,345,132 
Treatments per day   69,598    67,660 
Per day sequential growth   0.4%   1.2%
Per day year-over-year growth   2.9%   4.5%
Same market growth year-over-year   2.7%   4.4%
           
International          
Number of treatments   3,433,967    2,917,872 
Same market growth year-over-year   4.2%   6.2%

Fresenius Medical Care          
Quarterly Performance Scorecard - Expenses          
Three months ended December 31,   2011    2010 
(audited)          
           
North America          
Costs of revenue and operating expenses and income from equity method investees          
In percent of revenue   80.9%   82.1%
Selling, general and administrative          
In percent of revenue   18.0%   17.0%
Bad debt expenses          
In percent of revenue   2.7%   2.5%
U.S. Dialysis care operating expenses/treatment (in US-$)   279    287 
Sequential growth   0.2%   (0.9)%
Growth year-over-year   (2.6)%   0.0%
Dialysis Care operating expenses/treatment (in US-$)   273    281 
Sequential growth   0.0%   (0.9)%
Growth year-over-year   (2.7)%   (0.3)%
           
Total Group          
Costs of revenue and operating expenses and income from equity method investees          
In percent of revenue   82.3%   83.0%
Selling, general and administrative          
In percent of revenue   18.1%   17.4%
Effective tax rate   32.7%   36.3%

 

 

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Fresenius Medical Care        
Quarterly Performance Scorecard - Cash Flow/Investing Activities          
Three months ended December 31,   2011    2010 
(in US-$ thousands, except number of de novos)          
(audited)          
           
Total Group          
Operating cash flow   496,782    340,991 
In percent of revenue   15.0%   10.8%
           
Free cash flow before acquisitions   306,362    172,936 
In percent of revenue   9.2%   5.5%
           
Acquisitions and investments, net of divestitures   604,046    247,949 
           
Capital expenditures, net   190,420    168,055 
In percent of revenue   5.7%   5.3%
           
Maintenance   97,554    89,640 
In percent of revenue   2.9%   2.8%
           
Growth   92,866    78,415 
In percent of revenue   2.8%   2.5%
           
Number of de novos   10    18 
North America   6    11 
International   4    7 

 

Fresenius Medical Care          
Quarterly Performance Scorecard - Balance Sheet          
December 31,   2011    2010 
(audited)          
           
Total Group          
Debt (in US-$ million)   7,211    5,880 
Debt/EBITDA   2.7    2.4 
           
North America          
Days sales outstanding   55    54 
           
International          
Days sales outstanding   121    116 

 

 

Fresenius Medical Care AG & Co. KGaA, February 21, 2012 18 of 19
 

 

Fresenius Medical Care        
Quarterly Performance Scorecard        
Three months ended December 31,  2011   2010 
         
North America (U.S.)        
Clinical Performance          
Single Pool Kt/v > 1.2   97%   97%
Hemoglobin = 10-12g/dl   78%   71%
Hemoglobin = 10-13g/dl   88%   89%
Calcium = 8.4-10.2mg/dl   81%   81%
Albumin >= 3.5 g/dl 1)   85%   84%
No catheter   79%   76%
Phosphate <= 5.5mg/dl   64%   63%
Hospitalization days per patient
(12 months ending December 31)		   9.8    9.9 
           
Demographics          
Average age (in years)   62    62 
Average time on dialysis (in years)   3.8    3.7 
Average body weight (in kg)   81    81 
Prevalence of diabetes   56%   55%
           
Europe, Middle East and Africa          
Clinical Performance          
Single Pool Kt/v > 1.2   95%   95%
Hemoglobin = 10-12g/dl   57%   53%
Hemoglobin = 10-13g/dl   78%   77%
Calcium = 8.4-10.2mg/dl   78%   79%
Albumin >= 3.5 g/dl 1)   87%   88%
No catheter   82%   81%
Phosphate <= 5.5mg/dl   76%   77%
Hospitalization days per patient
(12 months ending December 31)		   9.2    9.7 
           
Demographics          
Average age (in years)   64    64 
Average time on dialysis (in years)   5.0    5.0 
Average body weight (in kg)   71    70 
Prevalence of diabetes   27%   27%

 

1) International standard BCR CRM470

 

 

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